SBA loan information you need to know!
When you start a business there are several things to learn, such as how to acquiring financing for your new business. You need to sign up for an SBA loan if you are new to the Small Business lending world. The SBA (Small Business Administration) provides excellent information to small business owners and anyone seeking to start their own business. They also provide great rates on loans and will be able to help you get started with your new business.
These loan programs are designed to provide businesses with secure financing that allows them to have money to get started with their business idea. Typically the loans are offered from private-sector lenders and then the SBA will guarantee them. Your bank or other lenders you have worked with have likely offered SBA loans in the past and will be able to help you out with the application process.
Visit the Small Business Administration website SBA.gov in order to learn more about the different lending options that are available to you. This will also be able to help you understand interest rates and how they work in addition to the several types of loans that are offered by the SBA. In this article we will discuss some of the SBA loans that are available to give you greater understanding as to which type of loans you may qualify for.
7(a) Loan Guaranty Program
This type of loan will provide a small business up to $2,000,000. You will need to have at 3 years of sales projections and sales history to provide and your business must have at least 100 employees if you are running a wholesale business. To get started with the loan you will have a one-time fee to submit the application and it can be financed by the loan as it could be 3.75% or higher. If you have had any personal bankruptcies in the past you will be denied this loan. The same goes for felony arrests along with your credit rating. For more information visit SBA.gov to learn about the 7(a) loan guaranty program.
This program will offer you about $35,000 for a new or start-up company. Many small businesses will turn to the Microloan programs as they provide you with money to pay for the expansion of your business. You have to find a local lender in order to talk to them about a microloan program as this will be able to provide you with more insight into the loan and to see if you qualify for it.
Disaster Recovery Loan
This loan is necessary for people that have been victims of a disaster such as a tornado or flooding. Small business owners can use it to pay for these disaster needs but you may not be aware of the fact that anyone can apply for this loan and it will help to recoup some of the costs that are left behind when you are dealing with a disaster.
There are several loan options available for Veterans and also those with special needs. It is important to research the loans that are on the SBA.gov site so you know which ones you will qualify for and to also make sure you have the right information to qualify for the loan. There are several forms you will need to fill out in order to qualify for an SBA loan and you do need to check on your personal credit to make sure that it is a higher score or you won't get approval for the loan. You may also need to bring in some documentation from the business dating back for 3 years or longer.